Impact of Pay for Performance on Operational Level Employee Satisfaction With Reference to The Leading Apparel Manufacturing Company in Kalutara District, Sri Lanka

Abstract

This study examines the impact of pay-for-performance on the satisfaction of operational-level employees in a selected apparel company in the Kalutara district, Sri Lanka. The dimensions of the study include skill allowances, target incentives, team leader allowances, and overall job satisfaction. A sample size of 192 employees was selected using a probability sampling technique, and data was collected via standard questionnaires administered through Google Forms and printed questionnaires. The analyzed results indicate that 68% of the variation in job satisfaction can be explained by independent variables. The correlation and multiple linear regression analysis results suggest that all the independent variables skill allowances, target incentives, and team leader allowances—have a strong positive correlation with the dependent variable, job satisfaction. Consequently, all the developed hypotheses were accepted, confirming the significant impact of pay-for-performance systems on employee satisfaction. These findings highlight the importance of well-structured incentive programs in enhancing employee satisfaction within the apparel industry. The study provides valuable insights for managers and policymakers aiming to optimize performance and satisfaction levels among operational-level employees.